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Taxation 01
Exercise: Bureau of Internal Revenue

1. The Bureau of the Internal Revenue is under the control and supervision of
a. The Court of Tax Appeals
b. The Bureau of Customs
c. The Department of Finance
d. The Legislative body

2. The Bureau of Internal Revenue shall be composed of:

a. A chairman and three commissioners
b. A chairman and four commissioners
c. A commissioner and three deputies
d. A commissioner and four deputies

3. Which of the following is not a power vested in the bureau of Internal

Revenue (BIR)?
a. The assessment and collection of all national internal revenue taxes,
fees and charges
b. The enforcement of all forfeitures, penalties and fines
c. The granting of tax exemptions and other incentives to taxpayers
d. The execution of judgments in all cases decided in its favor by the
court of tax appeals and the ordinary courts

4. Which of the following is not an authority granted by law to the

commissioner of the BIR?
a. To interpret tax laws and decide tax cases
b. To obtain information, summon, examine and take testimony of
persons
c. To make assessments and prescribe additional requirements for tax
administration and enforcement
d. To enact tax laws and amend the same

5. The following are expressed powers of the BIR Commissioner under the tax
code:
A. To prescribe real property values
B. To terminate taxable period
C. To inquire into bank deposit accounts
D. To accredit and register tax agent
a. A only c. A & C only
b. A & B only d. A, B, C, and D

6. Which of the following powers of the BIR Commissioner shall not be

delegated:
a. The power to recommend the promulgation of rules and regulations
by the Secretary of finance;
b. The power to issue rulings of first impression or to reverse, revoke or
modify any existing ruling of the Bureau;
c. The power to assign or reassign internal revenue to establishments
where articles subject to excise tax are produced or kept;
d. All of the above.

7. The following are constituted agents of BIR Commissioner for purposes of

collection of National Internal Revenue Taxes under the tax code, except:
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a. The Commissioner of Customs and his subordinates with respect to

the collection of national internal revenue taxes on imported goods;
b. The head of the appropriate government office and his subordinates
with respect to the collection of energy taxes;
c. Banks duly accredited by the Commissioner with respect to receipts
of payments of internal revenue taxes authorized to be made
through banks;
d. Individuals and general professional partnerships and their
representatives who prepare and file tax returns, statements,
reports, protests, and other papers with, or who appear before the
Bureau for the taxpayer

8. Which of the following taxes, fees and charges are deemed to be national
internal revenue taxes?
a. Income tax c. Documentary stamps
taxes
b. Excise taxes d. All of these

9. Which of the following taxes, fees and charges are not considered as
national internal revenue taxes?
a. Other percentage taxes c. Donors and estate
taxes
b. Value-added taxes d. Amusement taxes

10. Statement 1. The power to interpret provisions of the

National Internal Revenue Code and other tax laws shall be under the
exclusive and original jurisdiction of the Commissioner of Internal
Revenue, subject to review by the Secretary of Finance.
Statement 2. The power to decide disputed assessment and refunds of
internal revenue taxes is vested in the Commissioner of Internal Revenue,
subject to the exclusive appellate jurisdiction of the Court of Tax Appeals.
a. Only statement 1 is correct. C. Both statements are
correct.
b. Only statement 2 is correct. D. Both statements are
wrong.

11. The following are grounds wherein the Commissioner may

terminate the taxable period?
a. The taxpayer is retiring from business subject to tax.
b. The taxpayer is intending to leave the Philippines.
c. The taxpayer is intending to file a civil case against the Bureau of
Internal Revenue.
d. The taxpayer is intending to hide or conceal his property.

12. Statement 1. The power of the Commissioner of internal

Revenue to recommend the promulgation of rules and regulations by the
Secretary of Finance may not be delegated.
Statement 2. The power of the Commissioner of Internal Revenue to issue
rulings of first impression or to reverse, revoke or modify any existing
ruling of the Bureau of Internal Revenue may not be delegated.
a. Only statement 1 is correct. c. Both statements are
correct.
b. Only statement 2 is correct. d. Both statements are
wrong.
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13. Statement 1. The Commissioner of Internal Revenue is

authorized to inquire into the bank deposit of a tax payer who has filed an
application for compromise of his tax liability by reason of financial
incapacity to pay.
Statement 2. A compromise for tax liability on the ground of financial
incapacity to pay shall still involve a payment of tax from the taxpayer at a
minimum compromise rate of 10% of the basic assessed tax.
a. Only statement 1 is correct. c. Both statements are correct.
b. Only statement 2 is correct. d. Both statements are wrong.

14. Which statement is correct? In case of a tax erroneously

collected
a. A case for refund may be filed with the court simultaneously with
the filing of a claim for refund with the Bureau of Internal Revenue.
b. A case for refund may be filed with the court even without filing a
claim for refund with the Bureau of Internal Revenue.
c. A claim for refund must first be filed with the Bureau of Internal
Revenue and a decision of the Bureau must, under any
circumstance, be awaited before a case for refund may be filed
with the court.
d. A claim for refund must first be filed with the Bureau of Internal
Revenue and, in a given situation; a case for refund may be filed
with the court without awaiting the decision of the Bureau of
Internal Revenue.

15. Fixing the tax rate to be imposed is best described as a (an)

a. Tax administration aspect
b. Tax legislative function
c. Aspect of taxation which could be delegated
d. Function that could be exercised by the legislative branch

16. Which of the following is considered as a tax administrative

function?
a. Collection of taxes
b. Fixing of tax rates
c. Prescribing the date and place of payment of tax
d. Determination of the subject or object of taxation

17. They are issuances signed by the Secretary of Finance, upon

recommendations of the Commissioner of the Internal Revenue that
specify, prescribe or define rules and regulations for the effective
enforcement of the provisions of the National Internal Revenue Code
(NIRC) and related statutes.
a. Revenue regulations c. Revenue Memorandum Circular
b. Revenue Memorandum orders d. All of these

18. They are issuances that provide directives or instructions;

prescribe guidelines; and outline processes, operations, activities,
workflows, methods and procedures necessary in the implementation of
stated policies, goals, objectives, plans and programs of the Bureau in all
areas of operations, except auditing.
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a. Revenue regulations c. Revenue Memorandum Circular

b. Revenue Memorandum orders d. All of these

19. They are issuances that publish pertinent and applicable

portions, as well as amplifications, of laws, rules, regulations and
precedents issued by the BIR and other agencies/offices.
a. Revenue regulations c. Revenue Memorandum
Circular
b. Revenue Memorandum orders d. All of these

20. Which of the following statements is correct? A CPA can have

his certificate automatically revoked or cancelled upon conviction in a
criminal case:
a. For offering to the taxpayer the use of wrong
accounting records;
b. For willfully falsifying any audit report;
c. For rendering a report on unconfirmed statements;
d. All of the above.

***END***

Answer key:
1. C
2. D
3. C
4. D
5. D
6. D
7. D
8. D
9. D
10. C
11. C
12. C
13. C
14. D
15. B
16. A
17. A
18. B
19. C
20. D
**end**s